Reply to: This morning a UK agent sent me a spec

[scooterscot]

Been operating under Freiberufler status since I came here - Permies will never take me alive.

Kind of given up working anyway, bored to the back teeth with it.

[BlasterBates]

From Contractors' Questions: How to go freelance in Germany?

In order to work as a freelancer ('Freiberufler') in Germany, you have to be recognised as such by the tax office and, more importantly, by the social security authorities. You can apply to be recognised as a freelancer at the Deutsche Rentenversicherung. The status grants you not only certain tax advantages, as you point out, but also an exemption from all German social security requirements.

The main criteria the authorities apply include:
- turnover; number of clients: if five sixths of your turnover is generated by one client, you cannot be considered to be independent/freelance
- if you are integrated into the organisation of your client and depend on his instructions, you cannot be considered as a freelancer.

In our experience, it is quite easy to obtain Freiberufler status, and there are very few checks performed at the outset. At the end of the year, however, your tax return must demonstrate that the above criteria have been met. If it is deemed that you do not qualify for Freiberufler status, you may be exposed to extra tax and social security along with possible penalties.

I'd have thought most IT contractors would fall foul of the bold bit. In addition, how do people handle the 183 days rule? I'm currently looking at a 6 month fixed term contract, can you still be a freelancer with this type of contract?

A social insurance enquiry will generally cover a several years, provided you don't have 5/6 of your income from one client over 3 or 4 years you will have satisfied the criteria. My accountant told me that up to two years at one client would probably be OK.

When I got the routine enquiry because my time as a freelancer was more than 4 years back they didn't even bother to ask about which clients I'd worked for.

[BigRed]

From Contractors' Questions: How to go freelance in Germany?

In order to work as a freelancer ('Freiberufler') in Germany, you have to be recognised as such by the tax office and, more importantly, by the social security authorities. You can apply to be recognised as a freelancer at the Deutsche Rentenversicherung. The status grants you not only certain tax advantages, as you point out, but also an exemption from all German social security requirements.

The main criteria the authorities apply include:
- turnover; number of clients: if five sixths of your turnover is generated by one client, you cannot be considered to be independent/freelance
- if you are integrated into the organisation of your client and depend on his instructions, you cannot be considered as a freelancer.

In our experience, it is quite easy to obtain Freiberufler status, and there are very few checks performed at the outset. At the end of the year, however, your tax return must demonstrate that the above criteria have been met. If it is deemed that you do not qualify for Freiberufler status, you may be exposed to extra tax and social security along with possible penalties.

I'd have thought most IT contractors would fall foul of the bold bit. In addition, how do people handle the 183 days rule? I'm currently looking at a 6 month fixed term contract, can you still be a freelancer with this type of contract?

[darmstadt]

Contractors don't pay insurance in Germany so sayeth the law.

I was sent an enquiry as to why I hadn't paid social insurance so I ticked the box of being self-employed on the form they sent me and heard nothing back.

You don't have to pay any state mandated social insurance but you do have to pay health insurance, even when unemployed.

[BlasterBates]

spill the beans

Contractors don't pay insurance in Germany so sayeth the law.

I was sent an enquiry as to why I hadn't paid social insurance so I ticked the box of being self-employed on the form they sent me and heard nothing back.

[Andy2]

I paid German tax and no insurance at all. Saved me even more.

spill the beans

[Old Greg]

You're still a f'kin' leech.

You haven't quite got the idea of this contractor lark.

[BlasterBates]

You're still a f'kin' leech.

Looks like you overpaid your tax.

In Germany Social Insurance isn't actually a tax.

[Zigenare]

It's not compulsory.

That was your choice or the client probably.

You're still a f'kin' leech.

[BlasterBates]

F'kin leech!

It's not compulsory.

That was your choice or the client probably.

[Zigenare]

I paid German tax and no insurance at all. Saved me even more.

F'kin leech!

[BlasterBates]

I used to pay UK National Insurance and German Income Tax. Saved me a few bob.

I paid German tax and no insurance at all. Saved me even more.

[Zigenare]

That's because a freelancer in Germany pays no "compulsory social insurance".

I used to pay UK National Insurance and German Income Tax. Saved me a few bob.

[BlasterBates]

it's the compulsory social insurances in these countries no-one likes to mention, for some reason

That's because a freelancer in Germany pays no "compulsory social insurance".

[BR14]

it's the compulsory social insurances in these countries no-one likes to mention, for some reason